No Reverse Charge till 30th June 2018

The reverse charge mechanism on supply of goods or services by unregistered person to registered person has been deferred till June 30, 2018
For GST related queries and compliance contact us at 9900397777 
Official Notification:

Processing ITR U/s 143(1)(a)(vi) and Responding to Intimation

Section 143(1)(a)(vi) of the Income-tax Act, 1961 (‘Act’) as introduced vide Finance Act, 2016, w.e.f. 01.04.2017, prescribes that while processing the return of income, the total income or loss shall be computed after making adjustment for addition of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which has not been included in computing the total income in the return.

Process to be followed by the Tax Payer

As intimations proposing adjustments in identified returns under section 143(1)(a)(vi) of the Act would be shortly issued by the CPC-ITR, Bengaluru, the process to be followed by the taxpayers for filing the response is as under:

For furnishing the response electronically, taxpayer is required to login in to his account in the e-filing site and choose the option (View-Returns/Forms). In a case where communication/intimation has been issued to the taxpayer u/s 143(1)(a)(vi) of the Act, the status will be displayed in the dashboard as ‘Response to Communication/Intimation u/s 143(1)(a) is pending’. The taxpayer can click on the same and submit his response.

If Tax Payer Fully agrees:

Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, if the taxpayer fully agrees with the proposed adjustment, he is required to file a revised return in response.

If Tax Payer Fully disagrees:

Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, the taxpayer disagrees with the proposed adjustment, he is required to file a reconciliation statement (in the format to be provided by CPC-ITR on the e-filing site) in support of his contention.

If Tax Payer Partially agrees:

Where upon receiving the awareness message or formal intimation u/s 143(1)(a)(vi) of the Act, if the taxpayer partially agrees with the proposed adjustment, he is required to (i) file a revised return for the part of the proposed adjustment with which he is in agreement & (ii) file a reconciliation statement (in the format to be provided by CPC-ITR on the e-filing site) for the part of the proposed adjustment with which he is not in agreement.

Based upon response of the taxpayer as indicated above and the information so available with the CPC-ITR, thereafter, such returns shall be taken up for processing by CPC-ITR as per provisions of section(s) 143(1), 143(1)(a)(vi) read with Instruction No.s 9 & 10/2017 of CBDT.
For Expert Asistance contact us 9900397777 or shoot a mail to info@preethamandco.com

Taxing the Crypto Transaction Simplified

Source: ClearTax.

For Hassle free Tax Compliance contact us at 9900397777.

Key Highlights of 26th GST Council Meet

26th Meeting held on 10 March 2018. Some of the key recommendations of the GST Council are highlighted below:

E-way Rules:

E-way rules will apply from 1st April 2018 for all inter-state movement of goods.

For Intra-State movement of goods, e-way Bill System will be introduced w.e.f. a date to be announced in a phased manner but not later than 01st June, 2018

Reverse charge mechanism and TDS and TCS postponed:

The Council has further pushed out applicability of reverse charge mechanism on purchases made from unregistered dealers. With this postponement, it is recommended you exercise reasonable caution while preparing/renewing contracts for the next financial year with unregistered suppliers and provide for a clause to cover for RCM, when it comes into play.

Export promotion schemes further extended for 6 months:

This is likely to ease up working capital pressures on exporters in the coming months. The benefits will continue while e-wallet is being readied for launch. It is also hoped returns are further simplified so procedure of refund claims eases up.
For GST related queries and compliance contact us at 9900397777

Indra Nooyi Inspirational Story (By: Startup Stories)

Video Courtesy: Youtube

Modus Operandi of PNB Scam (Source: The Hindu)

Source: The Hindu (Storyboard: Satwik Gade)

Quick Insights to The Chit Funds (Amendment) Bill, 2018

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to introduce the Chit Funds (Amendment) Bill, 2018 in Parliament. In order to facilitate orderly growth of the Chit Funds sector and remove bottlenecks being faced by the Chit Funds industry, thereby enabling greater financial access of people to other financial products, the following amendments to the Chit Funds Act, 1982 have been proposed:

a)    Use of the words "Fraternity Fund" for chit business under Sections 2(b) and 11(1) of the Chit Funds Act, 1982, to signify its inherent nature, and distinguish its working from "Prize Chits" which are banned under a separate legislation;

b)    While retaining the requirement of a minimum of two subscribers for the conduct of the draw of the Chit and for the preparation of the minutes of the proceedings, the Chit Funds (Amendment) Bill, 2018 proposes to allow the two minimum required subscribers to join through video conferencing duly recorded by the foreman, as physical presence of the subscribers towards the final stages of a Chit may not be forthcoming easily. The foreman shall have the minutes of the proceedings signed by such subscribers within a period of two days following the proceedings;

c)    Increasing the ceiling of foreman's commission from a maximum of 5% to 7%, as the rate has remained static since the commencement of the Act while overheads and other costs have increased manifold;

d)    Allowing the foreman a right to lien for the dues from subscribers, so that set-off is allowed by the Chit company for subscribers who have already drawn funds, so as to discourage default by them; and

e)    Amending Section 85 (b) of the Chit Funds Act, 1982 to remove the ceiling of one hundred rupees set in 1982 at the time of framing the Chit Funds Act, which has lost its relevance. The State Governments are proposed to be allowed to prescribe the ceiling and to increase it from time to time.

Source: Govt of India Press Release

Quick Insights to Unregulated Deposit Schemes Bill, 2018

In a major policy initiative to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval to introduce the following bills in the Parliament:-

(a) Banning of Unregulated Deposit Schemes Bill, 2018 in parliament &

(b) Chit Funds (Amendment) Bill, 2018

Details:

The Banning of Unregulated Deposit Schemes Bill, 2018 will provide a comprehensive legislation to deal with the menace of illicit deposit schemes in the country through,

a)    complete prohibition of unregulated deposit taking activity;

b)    deterrent punishment for promoting or operating an unregulated deposit taking scheme;

c)    stringent punishment for fraudulent default in repayment to depositors;

d)    designation of a Competent Authority by the State Government to ensure repayment of deposits in the event of default by a deposit taking establishment;

e)    powers and functions of the competent authority including the power to attach assets of a defaulting establishment;

f)     designation of Courts to oversee repayment of depositors and to try offences under the Act; and

g)    listing of Regulated Deposit Schemes in the Bill, with a clause enabling the Central Government to expand or prune the list.

Salient Features:

The salient features of the Bill are as follows:

a)    The Bill contains a substantive banning clause which bans Deposit Takers from promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme. The principle is that the Bill would ban unregulated deposit taking activities altogether, by making them an offence ex-ante, rather than the existing legislative-cum-regulatory framework which only comes into effect ex-post with considerable time lags.

b)    The Bill creates three different types of offences, namely, running of Unregulated Deposit Schemes, fraudulent default in Regulated Deposit Schemes, and wrongful inducement in relation to Unregulated Deposit Schemes.

c)    The Bill provides for severe punishment and heavy pecuniary fines to act as deterrent.

d)    The Bill has adequate provisions for disgorgement or repayment of deposits in cases where such schemes nonetheless manage to raise deposits illegally.

e)    The Bill provides for attachment of properties/ assets by the Competent Authority, and subsequent realization of assets for repayment to depositors.

f)     Clear-cut time   lines   have   been   provided for attachment of property and restitution to depositors.

g)    The Bill enables creation of an online central database, for collection and sharing of information on deposit taking activities in the country.

h)    The Bill defines "Deposit Taker" and "Deposit" comprehensively.

i)     "Deposit Takers" include all possible entities (including individuals) receiving or soliciting deposits,   except specific  entities  such  as  those  incorporated   by legislation.

j)     "Deposit" is defined in such a manner that deposit takers are restricted from camouflaging public deposits as receipts, and at the same time not to curb or hinder acceptance of money by an establishment in the ordinary course of its business.

k)    Being a comprehensive Union law, the Bill adopts best practices from State laws, while entrusting the primary responsibility of implementing the provisions of the legislation to the State Governments.

Source: Govt of India Press Release